ACTIVE -Z SYSTEMS INDIA PRIVATE LIMITED,DELHI vs. INCOME TAX OFFICER, WARD 1(1), DELHI, DELHI

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ITA 5050/DEL/2025Status: DisposedITAT Delhi23 September 2025AY 2010-112 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the primary issue concerns the validity of the reopening due to a lack of proper approval from the prescribed authority under Section 151. The approval on record was examined.

What were the facts?

The assessee's appeal for AY 2010-11 arises from reassessment proceedings initiated under Section 147 read with Section 143(3). A key issue raised is the validity of the reopening itself.

What were the issues?

The central legal issue is whether the reopening of assessment was validly conducted, specifically questioning the approval obtained from the prescribed authority under Section 151 of the Act.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3),Section 151

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH `SMC, NEW DELHI

Before: Sh. Satbeer Singh Godara

Hearing: 23.09.2025Pronounced: 23.09.2025

Asstt. Year : 2010-11 Active-Z Systems India Pvt. Ltd., Vs Income Tax Officer, 206, Hans Bhawan, 1, Bahadurshah Ward-1(1), Zafar Magr, New Delhi-110002 New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. AACCA5053A Assessee by: Sh. Suresh Gupta, CA Revenue by : Sh. Manoj Kumar, Sr. DR Date of Hearing: 23.09.2025 Date of Pronouncement: 23.09.2025 ORDER

This assessee’s appeal for Assessment Year 2010-11, arises against the CIT(A), Delhi-31’s DIN & order No. ITBA/APL/S/250/2025-26/1078466480(1) dated 14.07.2025, in proceedings u/s 147 r.w.s 143(3). of the Income Tax Act, 1961 (in short “the Act”).

2.

Heard both the parties at length. Case file perused.

3.

It emerges during the course of hearing that there arises the first and foremost issue of validity of the reopening itself for want of a valid approval by the learned prescribed authority u/s. 151 of the Act. The tribunal’s attention is invited to the approval dated 22.03.2017 (page 33 in paper book) wherein the learned prescribed authority had accepted the Assessing Officer’s reopening proposal as “Yes, I am satisfied………”. This Active-Z Systems India Pvt. Ltd. being the clinching factual position emanating from the record, we hereby quote CIT vs. S. Goyanka Lime and Chemical Ltd. (2023) 453 ITR 242 (SC) that such a mechanical approval vitiates the entire reopening; and therefore, we accept the instant legal ground in very terms. This reopening is quashed therefore.

4.

All other pleadings on merits stand rendered academic.

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